Catalan First Minister Carles Puigdemont pulled back from the cliff edge in an address to the Catalan parliament Tuesday night, saying he would act on what he called a popular mandate to declare independence from Spain but first wanted dialogue with Madrid. “We have to calm down these tensions and move step by step towards our goal,” he said. “We’re not crazy. We are not trying to fight against democracy … We just wanted to vote.” He complained that “we [Catalans] were very polite in returning democracy to Spain” after the Franco era, but “Spain didn’t invest in Catalonia or respect the language.” He also noted that 500,000 Catalans were denied a vote on October 1 because of central government raids of polling stations.

Acknowledging the damage caused by the uncertainty triggered by the vote, Puigdemont pleaded to businesses, many of which have in recent days shifted their headquarters out of the region: “Stay here, don’t leave Barcelona.” Diego Torres describes Puigdemont’s delicate balancing act.

Rajoy calls cabinet meeting: Prime Minister Mariano Rajoy will convene his cabinet for a meeting at 9 a.m. to discuss Puigdemont’s speech. “Neither Mr Puigdemont nor anyone else can reach conclusions based on a law that does not exist, from a referendum that has not occurred,” said Deputy Prime Minister Soraya Saenz de Santamaría.

The need for mediation: Friends of Europe’s Shada Islam discusses the need for cool-headed mediation across the world, not just in Catalonia.

Tusk’s direct appeal to Puigdemont: A few hours before Puigdemont gave his speech to the Catalan parliament, European Council President Donald Tusk gave one of his most forceful yet to the Committee of the Regions, in which he urged the secessionist leader to back down. “Today I ask you to respect … the [Spanish] constitutional order and not to announce a decision that would make such a dialogue [with Madrid] impossible,” he said, describing himself as “a man who knows what it feels like to be hit by a police baton.”

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COUNCIL — AMBASSADORS PREPARE SUMMIT CONCLUSIONS: EU ambassadors will this morning meet to discuss the latest version of the October 19-20 summit conclusions, obtained by POLITICO.

Digital taxation: The major change to earlier drafts is the deletion of language highlighting ambitions on digital tax proposals, which pledged to “ensure that digitally generated profits in the [EU] are taxed where the value is created.” The new text makes no specific mention of how taxation would be enforced or changed. More for POLITICO Pro Tech and Financial Services subscribers here.

Migration: The language emphasizes the need to continue existing work and “to rapidly establish a permanent EU presence in Libya,” if conditions on the ground allow for it.

Security and defense: It urges governments to announce their intention to participate in “permanent structured cooperation” — a new EU military force — so it can be launched in December.

Turkey: Leaders aren’t expected to make any commitments or decisions next week.

EASTERN PARTNERSHIP CONCERNS: Ambassadors will also discuss a draft declaration to be signed in November by EU leaders and those of the six Eastern Partnership (EaP) countries (Ukraine, Moldova, Belarus, Georgia, Armenia and Azerbaijan). According to five people familiar with the negotiations, the Dutch government — formed this week by Mark Rutte, who called (and lost) a referendum on the EU’s partnership with Ukraine — is concerned about language welcoming the EaP countries’ “European ambitions.” The language in question was included in the 2015 Riga summit declaration but, the Dutch argue, has since been superseded by a legally binding Council statement in December last year that emphasized Ukraine was not currently on the enlargement agenda. “There are no issues, we are confident the Estonian presidency can find a compromise,” said a spokesman for the Dutch government.

Visegrád Group convenes the eastern front: Today the foreign ministers of central Europe’s Visegrád countries, as well as those from Bulgaria, Romania, Slovenia, Bosnia-Herzegovina and Estonia, meet in Budapest.

EEAS — PODCAST DU JOUR: The EU’s Delegation to the United States in Washington D.C. has a new podcast series called EU Now, with guests including European Commissioner for Competition Margrethe Vestager.

ECB — CENTRAL BANK’S €7.8BN PROFIT ON GREEK LOANS: The European Central Bank made a profit of €7.8 billion between 2012 and 2016 on Greek bonds purchased under its securities and markets program, ECB President Mario Draghi revealed in a letter to an MEP published Tuesday.

EUROGROUP — HAIL WOLFGANG! Much of Southern Europe will have breathed a sigh of relief at the departure of Germany’s powerful finance minister, Wolfgang Schäuble, not least Greece. But he may well be missed once his successor — likely from Germany’s Liberal Free Democrats (FDP) — takes office. Under the leadership of Christian Lindner, the FDP has veered sharply to the right on issues related to the eurozone. The Eurasia Group’s Mujtaba Rahman explains why even southern Europeans may one day miss Schäuble.

THE EX-FILES — SPOTTED: Malcolm Harbour having breakfast at Tout Bon, encouraging breakfasting former MEP colleagues to attend a roundtable he’s hosting at the European Policy Center this week. (It’s on October 12, details here).

EU GENDER EQUALITY INDEX LAUNCHES TODAY: Developed by the European Institute for Gender Equality, the index focuses on overall progress or decline, which countries have progressed the most, and offers recommendations on what is needed to close the gap. European Commissioner for Gender Equality Vĕra Jourová shared some of the findings with Playbook, in particular the lack of progress for women in many countries. “The numbers we see today tell a sad story, a story of stagnation, slow progress and prevailing gender inequality … [which] I find truly embarrassing,” said Jourová. The report will be online from 9:30 a.m. here.

TECH — GOOGLE RIVALS HAVE GRIPES: Four months after Google was fined a record €2.4 billion for flouting Europe’s antitrust rules, its rivals are worried about having to compete with the search giant in buying advertising slots at the top of its search results — Google’s proposed antitrust fix. “We are happy Google made a step,” Ben Kerkhof, CEO of Compare Group, told POLITICO’s Nicholas Hirst. “But the implementation, we are not happy with it. It is not logical in our eyes.” POLITICO Pro Tech subscribers can read the full story.

BREXIT 360° …

May refuses to say whether she’d vote Leave: During a live interview with LBC radio’s Iain Dale Tuesday, Prime Minister Theresa May, who voted Remain in last year’s referendum, refused to say whether she would vote Leave now.

No guarantees for EU citizens: So much for stability. May also said that while she wanted EU citizens to be able to stay in Britain, there were no guarantees if negotiations fail (link for POLITICO Brexit Pro subscribers).

Britain’s ‘no deal’ threat isn’t working: Council President Donald Tusk said at the plenary session of the European Committee of the Regions Tuesday that the EU is currently not preparing for a “no deal” scenario, responding to suggestions the U.K. government is prepared to walk away from the talks. “We are negotiating in good faith,” he said, adding he hoped “sufficient progress” will have been made by December. His comments are the latest evidence the EU27 aren’t feeling the fear of a British departure. James Randerson describes how the U.K. government’s threat has so far fallen flat.

As Hammond refuses to budget for no deal: In an article in the Times today, British Chancellor Philip Hammond rejects pledging billions of pounds to prepare for a no-deal Brexit.

‘Brexit is not a game,’ Barnier fumes: Michel Barnier, the EU’s Brexit negotiator, was taking his metaphors a tad too literally when approached by the BBC’s Adam Fleming on the way out from a Tuesday lunch at the U.K.’s embassy with Britain’s Brexit Secretary David Davis. When Fleming asked if the “ball is in the EU’s court” as Theresa May insists, Barnier rebuked: “Brexit is not a game.” Perhaps it was the British lunch menu of red meat that put Barnier, who is known to stick to fish wherever possible, off his game.

FRANCE — THE EDUCATION OF MACRON: In a bid to avoid the fate of his predecessors, President Emmanuel Macron is set on winning over his country’s teenagers by boosting their employment prospects, including via German-style apprenticeships that offer the opportunity for school-age students aiming for technical jobs to supplement their education with professional training in private companies. Pierre Briançon describes how Macron intends to ignore the polls for the next few years before reaping the (hoped-for) benefits of his reforms at the end of his term.

AUSTRIA — NAZI NO-GO: A member of Austria’s far-right Freedom Party (FPÖ) was kicked out over allegations he gave a Nazi salute, less than a week before the country goes to the polls.

ROMANIA — RESHUFFLE POSSIBLE: Romanian Prime Minister Mihai Tudose is expected to reshuffle his cabinet this week over concerns corruption investigations involving three ministers are damaging the image of the government. “There are at least two other ministers that I will ask to leave the cabinet,” said Tudose, adding that his relationship with Liviu Dragnea, the leader of the ruling Social Democrats, was not “in its happiest moment.”

ITALY — GOVERNMENT FORCES VOTE ON ELECTORAL LAW: Prime Minister Paolo Gentiloni’s coalition government on Tuesday called a confidence vote on a controversial electoral law that would apply to next year’s ballot — a tactic often used to push bills through the Italian parliament. Without the changes, the election due in May would likely end in a hung parliament, resulting in years of political paralysis.

MEDIA MOVES: BBC head of news and current affairs James Harding quit the public broadcaster to start his own venture. He will leave the Beeb early next year.

BRUSSELS CORNER …

REMEMBERING NEW ZEALAND’S DARKEST DAY: New Zealand today begins commemorating the 100th anniversary of Battle of Passchendaele, Belgium. In total, 960 New Zealanders died in the battle and its aftermath. “This experience had a profound effect on the young country, and shaped New Zealand’s commitment to peace and security that’s upheld to this day,” David Taylor, the country’s ambassador to the EU, told Playbook. With EU-New Zealand free trade negotiations now underway, “today New Zealand and Europe are closer than ever,” he said.

REPORT SEXUAL HARASSMENT ON BRUSSELS STREETS: “The Brussels region is funding the development of a mobile phone application to help women — and witnesses — report incidents of sexual harassment on the city’s streets,” reports the Bulletin.

CORRECTION ON BELGIAN LOCAL ELECTIONS: On Tuesday, Playbook noted Belgian local elections were only a year away and it was time to take action if you want a say. Thanks to those who wrote in with more details of the rules for different categories of non-Belgian voters, and to clarify a vote is possible for some of those who have not yet resided in Belgium for five years. Here are the details …

Non-Belgians need to register to vote by sending a form to their commune and including a copy of the front and back of their Belgian identity document. There are different forms for different categories of person. You don’t need to visit a commune in person to register (phew!).

Any EU citizen living in Belgium is able to vote, so long as they register in advance by completing this form.

Non-EU citizens must have been registered for five years as a Belgian resident to qualify to vote, and must also register using this separate form.

APPOINTED: Jean Pisani-Ferry will join the European University Institute (EUI) faculty from October 1, as the Tommaso Padoa-Schioppa Chair in European Economic and Monetary Integration.

PLAYBOOK COULDN’T HAPPEN WITHOUT Quentin Ariès and Zoya Sheftalovich

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